Home sales data from April across the D.C. region indicate a tightening of a market with low inventory, while home prices continue to rise over last year. Data from BrightMLS, the area’s local multiple listing service, shows a substantial drop in the number of units sold in April compared to April 2019 for most jurisdictions, possibly indicative of a wait-and-see attitude among home sellers due to COVID-19. Real estate indicators, of course, tend to lag behind real world events that continue to unfold in an atmosphere the likes of which the country has never seen.
In addition, other variables will continue to impact the market as well. At the top of the list will be interest rates and inflation, and how available funds might be for potential homebuyers. It will also be instructive to watch how different states and municipalities handle the reopening of a global economy that came to a screeching a couple of months ago.
In Arlington County, sale prices were up about 3.6 percent in April compared to the same month last year. But the number of units actually sold was down more than 25 percent over last year. One of the biggest drops was a further decrease in average days on market—from 19 days in April 2019 to just 12 days last month. That’s a 36 percent decrease over last April. Of the 197 units sold in Arlington in April, 157 of them—nearly 80 percent—sold in 10 days or less.
The number of units sold in Alexandria City last month was down about 19 percent compared to April 2019, but average sold prices were up nearly 8 percent. Like Arlington County, average days on market was just 12—a 20 percent drop from the average of 15 in April last year. About 80 percent of April’s sales happened in 10 days or less.
In greater Fairfax County, unit sales were down about 20 percent over April 2019, with the average days on market total at just two weeks—a 26 percent drop from the same time last year. Of the 1,271 April sales in Fairfax County, 77 percent sold in 10 days or less.
Washington, D.C., whose average sold prices had leveled off over the past several months, took a 6 percent jump last month over April 2019.
Similar to other jurisdictions, however, the number of D.C. units sold last month was 31 percent less than April last year. Sellers are seeing a bit more time on market—an average of 24 days—down from about 28 days in April last year as well. Only 58 percent of D.C. sales happened in the first 10 days on market, though more than 77 percent were sold within a month.
Montgomery County, Md., showed an 8.2 percent increase in average sold price over April of last year, and the number of units sold in the county were down just 11.5 percent. Homes in Montgomery County were on the market an average of 24 days, but more than 60 percent of those sold in 10 days or less.
Average Prince William County, Va., prices were also up more than 8 percent over April 2019, but homes sold in the county were down by more than 12 percent over the same period. Average days on market for the county, however, dropped a whopping 39 percent to just 14 days, another indication that demand and competition remains robust.
In Prince Georges County, Md., average sold prices jumped more than 12 percent compared to April 2019, but the number of units sold were down 13.3 percent over the same period of time. Average days on market was down to 29 for the county—a 23.7 percent decrease over April 2019.
While the number of available properties was lower in April 2020 compared to last year, there was no indication that the market was falling asleep in the area, and definitely no indication that home prices have shrunk in response to COVID-19. In this case, the perpetual low inventory status of much of the area could, for the short term, keep market prices in the same positive territory. It just remains to be seen how other market forces—from lending to employment—might impact area real estate in months to come.
Christopher Prawdzik, an Accredited Staging Partner® Real Estate Agent, and his wife Angela Logomasini are licensed Realtors® with Samson Properties in Alexandria. Operating as D.C. Region Real Estate, they are NVAR Top Producers that serve the Virginia, Washington, D.C., and Maryland real estate market and offer comprehensive real estate services, including 4½% full-service listings.
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